Jaguar Land Rover confirmed that parts of its IT system have been restored following a cyber attack, with a gradual restart process in place. The company is addressing a backlog of payments to suppliers affected by the production halt triggered by the cyber incident at the end of August. Production resumption dates have been postponed multiple times, now aiming for October 1 at the earliest.
JLR has reported progress in restoring sections of its digital infrastructure, allowing dealerships to service vehicles and expedite sales processes. The government is closely collaborating with Jaguar Land Rover and its supply chain to support recovery efforts. The National Cyber Security Centre is actively involved in addressing the cyber attack fallout.
Ministers are exploring options to assist JLR’s supply chain partners facing challenges, including potential job losses and financial strains. While a furlough scheme akin to the Covid response has been ruled out, proposals such as the government purchasing suppliers’ stock for later resale to JLR are being considered, albeit with skepticism from experts.
Former West Midlands Mayor Sir Andy Street cautioned against the proposed stock purchasing strategy, advocating for cash loans to suppliers instead. Reports suggest that JLR lacked insurance coverage against cyber attacks, raising concerns about financial repercussions from the prolonged factory shutdown.
Experts estimate potential financial losses of around £120 million for JLR due to the halted production at its facilities in Merseyside and the West Midlands. The impact is projected to escalate significantly with each extended week of shutdown. JLR’s daily production capacity of over 1,000 vehicles at its affected sites remains halted, posing operational challenges for the automotive giant.